The view from inside a 'real' Madison B&B

Last November, David Waugh and Bob Klebba opened Mendota Lake House (formerly the Collins House), a stately stone bed-and-breakfast on Gorham Street near James Madison Park. Rather than fight the trend, they have opted to list rooms on Airbnb as well as booking through their website.

But because they are a licensed B&B, they have to pay a room tax and sales tax and are subject to safety inspections. Airbnb lets them set their own prices, so the owners say they charge enough to cover the extra costs.

Airbnb has been "great for our marketing," says Waugh, who says Airbnb reminds him of European-style lodgings like pensiones, where people rent out spare rooms. "I think the infrastructure they have is wonderful, and it really works well. I think the business model they have is fantastic, and we're happy to participate."

But Waugh and Klebba say they think the city should be aware of who's renting what. Rentals like the Sagers (where the owners are present) don't keep Waugh and Klebba up at night, but they say they've had neighbors complain about Airbnb rentals of entire condos, especially in locked buildings where guests get codes.

"With Airbnb you can have complete strangers going into people's houses. In an established neighborhood, neighbors see strangers going in and out," explains Waugh. "It kind of gives up that sense of neighborhood security. That person doesn't belong there."

On the other hand, Airbnb hosts (like traditional B&B owners) tend to be ambassadors for Madison culture, says Waugh, and that should count for something. "We're very happy anytime a visitor has a chance to have a knowledgeable host who's going to cater to their needs. If they're not staying with us, we'd rather they're at another B&B or an Airbnb. We think people prefer that lodging."